Interesting article about Oil

wanghong

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2 x: s( `4 V8 ]$ t5 qBelow is an Interesting article I found, which says that.....Do not
, [/ h5 n) b3 k( P2 \expect much from Crude Oil producers and future is not with the
* G, X3 a3 {+ B1 \* P4 Kcompanies producing Jet fuels but Biofuels. Also no wonder if some of
# T+ h3 N# [. F1 uthese oil producer will go bankrupt or out of the business even if
# I! x, s* G+ r" `crude prices improves. This implies also to good names such as Shell,
( m% M. ~7 F2 I7 A7 D. XEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
9 \6 [* T& c. C6 g3 l" AA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
/ N7 |3 r1 H2 @# J& U) M0 ]of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
4 D1 ]5 \2 q; ~) e6 [& r! Q' Nin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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" E6 W. S; k; O; U6 s7 ?2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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! Q9 y+ O" N; Y/ l5 X3. New methods of injecting CO2 and surfactants into oil wells is
( R+ B+ b0 c; s6 Ybeing used to double their output.
  {4 y2 d( l9 i# `- i( t  n5 I7 }* B

4. Production of bio-fuels is beginning to reach critical mass. Bio
+ z  L# l8 N) v0 ]/ W. Zfuel is being produced from many plants and algae. The production
# \- m# \' \( u) @7 V  K: tpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
, W5 z# |: H4 o+ T* t4 Z5 G7 F# L- zare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
# ~/ |. L& l. l* Qto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


$ K* N/ r! F0 K3 T: B6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
8 G& L/ @" a  Y6 s5 S5 Q+ \expected to be built in the future. Much of the energy they produce
& y- {* K+ c( m9 c7 Mwill replace oil.


7. Every company in any form of transportaion business is replacing
3 E+ k) F3 G5 \" z4 L- P% folder equipment such as trucks, airplanes, train engines, ships, etc.
% @" S" m# S% `/ Jwith new more fuel efficient equipment. Airlines and railway companies
+ Q: B( P' k- {( L7 f; e8 |$ Vare experiencing 20% to 25% better fuel econony with the new
equipment.
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# \8 [# K& e) F8 V$ O% ~2 HAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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/ i  k2 T. z: N0 z0 ~& ]/ q8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.

" ^& y( B) }9 g7 f9 |
4 l* q3 t, q2 K  r9. Coal is being transformed into a clean burning liquid fuel. The CO2
$ d7 [/ S* A4 [5 j1 |produced as a byproduct is sold to oil companies for injection into
) V9 }. w" v$ qoil wells.
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3 R# O1 y! F  Q10. Solar, wind and ocean energy is displacing oil as an energy
0 S3 A) i- j3 K6 bsource. Three new wind turbines are being erected every day in the US.


Each of the above by itself will not make a large difference in the
1 Z, ^8 G7 h6 n7 v: \9 r$ C: lprice of crude oil but the sum of all of them together is world
- h* W# B! X1 l: c! Qchanging. The important thing is that OPEC no longer has the ability
  h& \' G  r, ?1 N3 J/ j5 Hto control oil prices.
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With the above scenario, I still believe that there are under
8 |( ?2 u: l& s* {/ g# p- ]% Pperformed OIL companies and probably they are yet to get the justified
% m; {& ?2 f) h! C% w. m5 l8 nvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
" L$ b- _; [6 L9 D  m/ O7 c2009 ... FYI-Only